Noting that the country had to diversify its energy basket through use of alternative fuels, the report said otherwise higher percentage of GDP (gross domestic product) would have to be spent on imports, increasing vulnerability to price shocks.

Admitting that the country’s economy could not be insulated against external shocks, the report, however, said their impact could be limited by boosting domestic production, increasing use of alternative fuels and reducing oil imports.

Dwelling on the impact of oil on the economy and its significance in the country’s coal-dominant energy basket, the report said as major oil suppliers were in the unstable regions of West Asian and North Africa, the nation faces host of risks ranging from geopolitics to volatile price.

The report also favoured shoring up oil reserves by encouraging state-run and private Indian oil firms to scout for potential reserves overseas.

“As oil is a traded commodity, equity oil offsets the impact of stagnant domestic production and acts as a hedge against fuel prices. Sharp fall in global oil prices (from $110 in June 2014 to $40 per barrel) is a good opportunity to acquire oil assets overseas,” India-Tech Foundation president Indra Mohan added.

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of www.mangalorean.com or any employee thereof. www.mangalorean.com is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of www.mangalorean.com to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at info@mangalorean.com. Lets work together to keep the comments clean and worthful, thereby make a difference in the community.